The Role of Arbitration within Today's Challenges to the World Community and to International Law

Abstract

IN RECENT decades, arbitration has grown from a traditional dispute settlement system mostly used in certain countries into one used worldwide both for domestic and even more for international disputes. And the parties relying on arbitration in their contracts and later in their disputes are no more only private enterprises, but also states, state institutions and – as I will mention later – international organisations. In this context, if the world community now uses arbitration, the status of and new challenges to the world community tend to have a much greater impact on arbitration than in earlier times. Since the end of the Second World War, major and fundamental changes have taken place regarding the international community of states, its economic and social environment, and also regarding its legal environment and framework. Without going into a long list, one may just mention the development of so many former colonies into independent states and the formation and growth of the United Nations. The much cited ‘globalisation’ has brought about not only economic but also social and political changes in many countries, as well as regionally and internationally. A more specific illustration is my own country, Germany's role in the world community which has changed dramatically from the outlaw after the Second World War to a re-unified Germany as a respected and active major player today. And an even more obvious specific illustration is China's growth into a major global player and the new status of Hong Kong as a part of China. Though many of these changes have brought about advantages for the states and their citizens, many old problems have remained and new problems have arisen. In Germany, we are still struggling with the consequences of re-unification. In Europe, old and new members of the Union will have to work …